Phumelela, RA and Racing Trust contribute towards stakes deficit

Horseracing and tote betting operator Phumelela, the Racing Association  (the organisation responsible for looking after the interests of owners in Phumelela regions) and the Thoroughbred Horseracing Trust are contributing R4 million towards offsetting a R10-million shortfall in prize money for races at the five Phumelela racecourses in the 2010-11 racing season.

Prize money in Phumelela regions each season is determined by a formula in terms of which a percentage of total tote betting turnover in the previous term goes to the stake pool. Unfortunately, turnover in 2009-10 was three percent down on the previous season, a significantly better outcome than in many other racing countries, and that has resulted in the current deficit.

Instead of cutting stakes across the board to eliminate the shortfall, the Racing Association (RA) and Phumelela, in conjunction with the Racing Trust, investigated various other options to deal with the deficit.

The R4-million contribution from them together with a natural saving of about R1.5 million from race meetings abandoned because of rain (a loss of one meeting per region has been budgeted) and a small saving from “B Grade” meetings on the Highveld (stakes all races R50,000) leaves a deficit of some R4.3 million and the following measures will be introduced from 1 January 2011 to make up the shortfall:

* A two-tier stake system will be implemented. Normal (existing) stakes will be paid from August to April, but prize money of all turf races at Turffontein and the Vaal in May, June and July (the “off-season”) will be 10% lower. This will not apply to races on sand.

* Entry fees for minor and feature races are to be increased, as well as declaration fees for feature events, while declaration fees for minor races will be introduced. Entry and declaration fees for feature races will collectively equal one percent of the stake, while entry and declaration fees for minor races will each be 0.1 percent of the average minor-race stake.

In a move not related to the stakes deficit, the prize money for Maiden Plates at Turffontein and the Vaal is to drop from R80,000 to R70,000. This will allow for up to 32 Maiden Plates programmed from January to July to be split into two races when the number of final acceptors warrants creating an extra race.

The RA is doubling the number of races in which it pays bonuses. There will be 38 such races at Turffontein and the Vaal in 2011, each with a R20,000 bonus for the owners if they are RA members. There will be 16 bonus races in Port Elizabeth, each with an additional R15,000 for RA-member owners, and four such races at Flamingo Park each with a R10,000 bonus.

Have Your Say - *Please Use Your Name & Surname

Comments Policy
The Sporting Post encourages readers to comment in the spirit of enlightening the topic being discussed, to add opinions or correct errors. All posts are accepted on the condition that the Sporting Post can at any time alter, correct or remove comments, either partially or entirely.

All posters are required to post under their actual name and surname – no anonymous posts or use of pseudonyms will be accepted. You can adjust your display name on your account page or to send corrections privately to the EditorThe Sporting Post will not publish comments submitted anonymously or under pseudonyms.

Please note that the views that are published are not necessarily those of the Sporting Post.

Notify of
Inline Feedbacks
View all comments



Popular Posts

From Russia With Love

Cape racegoers of an older generation will remember the fine racemare Boland Pride, who counted what is now the Gr1 Cape Fillies Guineas amongst her eight victories

Read More »

Dream Summer For Royal Victory

In the run for home Royal Victory, having his first run over 2000m, built up from rear of midfield as he picked them off one by one and had Son Of Raj and Safe Passage firmly in his sights at the 200m

Read More »

Hollywoodbets Kenilworth – A Splendid History

In 1874,  the members of the South African Turf Club chose a site on the farm Kenilworth for the construction of a new racecourse – which means that next year the foundation of the oldest racetrack in South Africa will celebrate 150 years

Read More »